ATO late lodgement penalty: up to $364 per 28 days, capped at $1,820 per document · interest 11.43% p.a. compounding daily · See how to remit them →
Who does what
| Layer | What it actually covers | Realistic cost |
|---|---|---|
| Software | Bank feeds, invoicing, BAS assembly, payroll mechanics and Single Touch Payroll | $0 to $100+ per month depending on tier |
| You, or a bookkeeper | The weekly rhythm: reconciling, coding, receipts, chasing invoices. Bookkeepers earn their keep on volume - payroll, inventory, high transaction counts | DIY: around 30 minutes a week. Bookkeeper: commonly $50-$90 an hour, a few hours a month for a typical micro business |
| Registered BAS or tax agent | Reviewing the judgment calls (GST classification, entertainment, private use); lodging returns and BAS on the agent program; structure, Division 7A and concessions; remission requests, payment plans and catch-ups - representation is agent-only territory | Sole trader return plus schedule: commonly a few hundred dollars. Company with BAS review: low thousands a year. Multi-year catch-ups are quoted per job, and the fee is deductible |
The two ways businesses get this wrong
Over-DIY. "Xero does it all" holds right up until the classification errors compound: GST charged on GST-free items, assets expensed, the directors' loan nobody watched, a PSI question never asked. The software faithfully automated every mistake, and the eventual amendments or review cost multiples of the quarterly check that would have caught them. The tell: nobody has ever looked at your file, and you are not sure which cash or accruals setting you are on.
Over-outsource. Paying an accountant's rates for bookkeeping-layer work - data entry, chasing receipts - is the opposite waste. The efficient stack for most small businesses is software, plus your weekly 30 minutes or a bookkeeper at volume, plus an agent quarterly for the judgment layer and annually for the lodgments.
And the case where the question answers itself: if you are behind, with unlodged returns, BAS quarters and an unreconciled year, this stopped being a software-versus-accountant question. Catch-up work is agent territory by function - reconstruction, remission, and the lodgment shield against director penalties - and it is the one job where the fee most reliably pays for itself in penalties and interest not paid.
Frequently asked questions
Do I need an accountant if I use Xero?
What is the difference between a bookkeeper and an accountant?
How much does an accountant cost for a small business?
Can I lodge my own BAS and returns from Xero?
What can only a registered tax agent do?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.